<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
(Mark One)

    [X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

For the quarterly period ended   March 31, 2003

                                       OR

    [ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

For the transition period from                 to
                               --------------     -------------

                        Commission file number: 001-15035

                                ABLE ENERGY, INC.
             (Exact name of registrant as specified in its charter)

         DELAWARE                                             22-3520840
(State or other jurisdiction of                            (I.R.S. employer
incorporation or organization)                             identification No.)

      198 GREEN POND ROAD
      ROCKAWAY, NJ                                               07866
(Address of principal executive offices)                       (Zip code)

Registrant's telephone number, including area code: (973) 625-1012

                                 NOT APPLICABLE
              (Former name, former address and former fiscal year,
                         if changed since last report)

     Indicate by check X whether registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes [X] No [ ]

     As of May 7, 2003, 2,013,250 shares, $.001 Par value per share, of Able
Energy, Inc. were issued and outstanding.

<PAGE>

                                TABLE OF CONTENTS


                                                                          PAGE
                                                                          ----

PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS (UNAUDITED)

     Consolidated Balance Sheets as of June 30, 2002 and
        March 31, 2003                                                   3 - 4

     Consolidated Statements of Income for the three and nine
        months ended March 31, 2003 and March 31, 2002                       5

     Consolidated Statement of Stockholders' Equity nine months
        ended March 31, 2003                                                 6

     Consolidated Statements of Cash Flow for the nine months
        ended March 31, 2003 and 2002                                    7 - 8

     Notes to Unaudited Financial Statements                            9 - 26

<PAGE>

<TABLE>
<CAPTION>
                                   ABLE ENERGY, INC. AND SUBSIDIARIES

                                       CONSOLIDATED BALANCE SHEET

                                                 ASSETS

                                                                              March 31,          June 30,
                                                                                2003               2002
                                                                            (Unaudited)          (Audited)
                                                                            -----------          ---------
<S>                                                                        <C>                  <C>
Current Assets:
    Cash                                                                   $    11,890          $   258,560
    Accounts Receivable - Less Allowance for Doubtful
       Accounts of $397,358 (2003) and $242,358 (2002)                       4,362,891            1,933,526
    Inventory                                                                  955,377              405,424
    Notes Receivable - Current Portion                                          45,590               32,756
    Miscellaneous Receivables                                                   90,944              113,905
    Prepaid Expenses                                                           303,336              228,839
    Prepaid Expense - Income Taxes                                               4,796                2,733
    Deferred Income Tax                                                        269,083               65,703
    Due From Officer                                                            44,690               44,690
    Insurance Claim Receivable (Note 21)                                       577,416                    -
                                                                           -----------          -----------
        Total Current Assets                                                 6,666,013            3,086,136
                                                                           -----------          -----------
Property and Equipment:
    Land                                                                       451,925              451,925
    Buildings                                                                  946,046            1,096,046
    Trucks                                                                   2,950,873            3,037,192
    Fuel Tanks                                                               1,432,126            1,190,153
    Machinery and Equipment                                                    694,817              576,123
    Leasehold Improvements                                                     579,187              578,792
    Cylinders                                                                  755,496              731,692
    Office Furniture and Equipment                                             200,640              200,640
    Website Development Costs                                                2,242,335            2,200,511
                                                                           -----------          -----------
                                                                            10,253,445           10,063,074
    Less: Accumulated Depreciation and Amortization                          4,030,602            3,461,342
                                                                           -----------          -----------
        Net Property and Equipment                                           6,222,843            6,601,732
                                                                           -----------          -----------
Other Assets:
    Deposits                                                                   144,415               70,570
    Notes Receivable - Less Current Portion                                    189,780              216,628
    Customer List, Less Accumulated Amortization of  ($188,122) at
        March 31, 2003, and June 30, 2002                                      422,728              422,728
    Covenant Not to Compete, Less Accumulated Amortization of
         ($71,667) at March 31, 2003 and ($56,667) at June 30, 2002             28,333               43,333
    Development Costs - Franchising, Less accumulated
           Amortization of ($16,084) at March 31, 2003 and ($9,191)
           at June 30, 2002                                                     29,871               36,764
                                                                           -----------          -----------
         Total Other Assets                                                    815,127              790,023
                                                                           -----------          -----------

        Total Assets                                                       $13,703,983          $10,477,891
                                                                           ===========          ===========

                                      See Accompanying Notes
                                                 3
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                       ABLE ENERGY, INC. AND SUBSIDIARIES

                                       CONSOLIDATED BALANCE SHEET (Cont'd)


                                       LIABILITIES & STOCKHOLDERS' EQUITY

                                                                              March 31,            June 30,
                                                                                2003                 2002
                                                                             (Unaudited)           (Audited)
                                                                             -----------          -----------
<S>                                                                          <C>                  <C>
Current Liabilities:
    Accounts Payable                                                         $ 2,353,807          $ 1,159,341
    Note Payable - Bank                                                        1,270,000            1,470,000
    Notes Payable - Other                                                      1,350,000              500,000
    Current Portion of Long-Term Debt                                            540,146              584,384
    Accrued Expenses                                                             666,749              309,363
    Accrued Taxes                                                                196,879               24,673
    Customer Pre-Purchase Payments                                               385,552              880,111
    Customer Credit Balances                                                     172,503              548,336
    Escrow Deposits                                                               16,072               28,472
    Note Payable - Officer                                                       368,604               55,000
                                                                             -----------          -----------
        Total Current Liabilities                                              7,320,312            5,559,680

Deferred Income                                                                   79,679               79,679
Deferred Income Taxes                                                             65,222               54,712
Long Term Debt: less current portion                                           1,677,883            1,522,680
                                                                             -----------          -----------
        Total Liabilities                                                      9,143,096            7,216,751
                                                                             -----------          -----------
Stockholders' Equity:
    Preferred Stock
    Authorized 10,000,000 Shares Par Value $.001 per share
     Issued - None
    Common Stock
    Authorized 10,000,000 Par Value $.001 per share Issued
      and Outstanding 2,013,250 Shares March 31, 2003, and
           2,007,250 at June 30, 2002                                              2,014                2,008
    Paid in Surplus                                                            5,711,224            5,687,230
    Retained Earnings (Deficit)                                               (1,152,351)          (2,428,098)
                                                                             -----------          -----------
        Total Stockholders' Equity                                             4,560,887            3,261,140
                                                                             -----------          -----------

        Total Liabilities and Stockholders' Equity                           $13,703,983          $10,477,891
                                                                             ===========          ===========





                                             See Accompanying Notes
                                                         4
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                                                 ABLE ENERGY, INC. AND SUBSIDIARIES

                                                CONSOLIDATED STATEMENT OF OPERATIONS

                                                             (UNAUDITED)


                                                          Three Months March  31,              Nine Months Ended March 31,
                                                          ------------------  ---              ---------------------------

                                                          2003                2002               2003                2002
                                                          ----                ----               ----                ----
<S>                                                    <C>                 <C>                <C>                 <C>
Net Sales                                              $19,490,580         $ 8,800,243        $38,177,651         $21,368,992

Cost of Sales                                           15,879,981           6,688,842         31,217,309          17,133,434
                                                       -----------         -----------        -----------         -----------

   Gross Profit                                          3,610,599           2,111,401          6,960,342           4,235,558
                                                       -----------         -----------        -----------         -----------
Expenses
   Selling, General and Administrative Expenses          1,747,490           1,367,605          4,178,008           3,934,343
   Depreciation and Amortization Expense                   317,251             290,824            911,922             858,631
                                                       -----------         -----------        -----------         -----------
      Total Expenses                                     2,064,741           1,658,429          5,089,930           4,792,974
                                                       -----------         -----------        -----------         -----------

   Income (Loss) From Operations                         1,545,858             452,972          1,870,412            (557,416)
                                                       -----------         -----------        -----------         -----------
Other Income (Expenses):
   Interest and Other Income                                60,554              45,446            126,668             171,225
   Interest Expense                                       (151,137)            (81,531)          (340,223)           (213,527)
   Other Expense (Note 22)                                (414,000)                  -           (414,000)                  -
                                                       -----------         -----------        -----------         -----------
      Total Other Income (Expenses)                       (504,583)            (36,085)          (627,555)            (42,302)
                                                       -----------         -----------        -----------         -----------

   Income (Loss) Before Provision for Income Taxes       1,041 275             416,887          1,242,857            (599,718)

Provision (Reduction) for Income Taxes                     (39,890)             (3,585)           (32,890)             (2,885)
                                                       -----------         -----------        -----------         -----------

   Net Income (Loss)                                   $ 1,081,165         $   420,472        $ 1,275,747         $  (596,833)
                                                       ===========         ===========        ===========         ===========

Basic Income (Loss) Per Common Share                   $       .54         $       .21        $       .63         $      (.30)
                                                       -----------         -----------        -----------         -----------

Diluted Income (Loss) Per Common Share                 $       .53         $       .20        $       .62         $      (.30)
                                                       -----------         -----------        -----------         -----------

Weighted Average Number of Common Shares
   Outstanding - Used in Basic                           2,009,814           2,000,921          2,009,814           2,000,921
                                                       ===========         ===========        ===========         ===========
Weighted Average Number of Common Shares
   Outstanding - Used in Diluted                         2,052,751           2,055,812          2,052,751           2,000,921
                                                       ===========         ===========        ===========         ===========

                                                        See Accompanying Notes
                                                                   5
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                             ABLE ENERGY, INC. AND SUBSIDIARIES

                                       CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

                                                   NINE MONTHS ENDED MARCH 31, 2003

                                                              (UNAUDITED)


                                                          COMMON STOCK
                                                         .001 PAR VALUE
                                                         --------------

                                                                      ADDITIONAL                            TOTAL
                                                                        PAID-IN          RETAINED        STOCKHOLDERS'
                                    SHARES            AMOUNT            SURPLUS          EARNINGS           EQUITY
                                    ------            ------            -------          --------           ------
<S>                                <C>               <C>              <C>               <C>               <C>
Balance - July 1, 2002             2,007,250         $ 2,008          $5,687,230        $(2,428,098)      $3,261,140

Shares Issued                          6,000               6              23,994                              24,000

Net Income                                                                                1,275,747        1,275,747
                                                                                        -----------       ----------
Balance - March 31, 2003           2,013,250         $ 2,014          $5,711,224        $(1,152,351)      $4,560,887
                                   =========         =======          ==========        ===========       ==========









                                                      See Accompanying Notes
                                                                  6
</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                                         ABLE ENERGY, INC. AND SUBSIDIARIES

                                         CONSOLIDATED STATEMENT OF CASH FLOW

                                                     (UNAUDITED)

                                                                                 NINE MONTHS ENDED MARCH  31,
                                                                                          UNAUDITED
                                                                                          ---------

                                                                                2003                     2002
                                                                                ----                     ----
<S>                                                                           <C>                     <C>
Cash Flow From Operating Activities
-----------------------------------
   Net Income (Loss) - Continuing Operations                                  $1,275,747              $(596,833)
   Adjustments to Reconcile Net Income (Loss) to Net Cash
    used by Operating Activities:
      Depreciation and Amortization                                              911,922                 858,631
      Other Expense                                                              414,000                       -
      Directors' Fees                                                             24,000                       -
      Gain on Disposal of Equipment                                                 (44)                       -
      (Increase) Decrease in:
         Accounts Receivable                                                  (2,429,365)               (310,670)
         Inventory                                                              (549,953)               (190,404)
         Prepaid Expenses                                                        (76,560)                 29,937
         Insurance Claim Receivable                                             (238,099)                      -
         Deposits                                                                (65,000)                      -
         Deferred Income Tax - Asset                                             (43,400)                      -
      Increase (Decrease) in:
         Accounts Payable                                                      1,194,466                (224,083)
         Accrued Expenses                                                        (44,288)               (205,224)
         Customer Advance Payments                                              (494,559)               (738,352)
         Customer Credit Balance                                                (375,833)                 61,101
         Deferred Income Taxes                                                    10,510                  (2,885)
         Escrow Deposits                                                         (12,400)                  5,000
                                                                              ----------              ----------
           Net Cash (Used) Provided by Operating Activities                     (498,856)             (1,313,782)
                                                                              ----------              ----------

Cash Flow From Investing Activities
-----------------------------------
   Purchase of Property and Equipment                                           (810,415)               (683,592)
   Web Site Development Costs                                                    (41,824)                 63,629
    Increase in Deposits                                                          (8,845)                (14,829)
    Sale of Equipment                                                              1,726                       -
    Payment on Notes Receivable - Sale of Equipment                               13,359                  11,646
    Note Receivable - Montgomery                                                     655                     644
    Other Receivables                                                             22,961                 (17,784)
                                                                              ----------              ----------
          Net Cash (Used) Provided  By Investing Activities                   $ (822,383)             $ (640,286)
                                                                              ==========              ==========

                                                See Accompanying Notes
                                                           7

</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                                      ABLE ENERGY, INC. AND SUBSIDIARIES

                                 CONSOLIDATED STATEMENT OF CASH FLOW (CONT'D)

                                                  (UNAUDITED)


                                                                               NINE MONTHS ENDED MARCH 31,
                                                                                       UNAUDITED
                                                                                       ---------

                                                                              2003                    2002
                                                                              ----                    ----
<S>                                                                       <C>                     <C>
Cash Flow From Financing Activities
-----------------------------------
   Increase in Notes Payable - Bank                                       $         -             $ 1,370,000
   (Decrease) in Notes Payable - Bank                                        (200,000)               (449,720)
   Increase in Notes Payable - Other                                          850,000                       -
   Decrease in Long-Term Debt                                                (496,824)               (496,872)
   Increase in Long-Term Debt                                                 607,789                 408,745
   Note Payable - Officer                                                     313,604                       -
   Sale of Common Stock                                                             -                   4,063
                                                                           ----------             -----------
           Net Cash (Used) Provided  By Financing Activities                1,074,569                 836,216
                                                                           ----------             -----------

Net (Decrease) Increase In Cash                                              (246,670)             (1,117,852)
Cash - Beginning of Year                                                      258,560               1,489,018
                                                                           ----------             -----------
Cash - End of Year                                                         $   11,890             $   371,166
                                                                           ==========             ===========

The Company had Interest Cash Expenditures of:                             $  315,223             $   208,275
The Company had Tax Cash Expenditures of:                                  $   22,167             $    10,200






                                          See Accompanying Notes
                                                    8
</TABLE>
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        JUNE 30, 2002 AND MARCH 31, 2003


NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------

          Principles of Consolidation
          The consolidated financial statements include the accounts of Able
          Energy, Inc. and its subsidiaries. The minority interest of 1% in Able
          Propane, LLC is immaterial and has not been shown separately. All
          material inter-company balances and transactions were eliminated in
          consolidation.

          Majority Ownership
          The Company is the majority owner, owning 70.6% of the issued shares
          of a subsidiary, PriceEnergy.Com, Inc. in which their capital
          investment is $25,000. The subsidiary has established a Web Site for
          the sale of products through a network of suppliers originally on the
          East Coast of the United States. The Web Site became active in October
          2000 (See Notes 8 and 13)

          Minority Interest
          The minority interest in PriceEnergy.Com, Inc. is a deficit and, in
          accordance with Accounting Research Bulletin No. 51, subsidiary losses
          should not be charged against the minority interest to the extent of
          reducing it to a negative amount. As such, the losses have been
          charged against the Company, the majority owner. The loss for nine
          months ended March 31, 2003 is $534,089 (See Notes 8 and 13).

          The consolidated interim financial statements included herein have
          been prepared by the Company, without audit, pursuant to the rules and
          regulations of the Securities and Exchange Commission. Certain
          information and footnote disclosures normally included in financial
          statements prepared in accordance with generally accepted accounting
          principles have been condensed or omitted pursuant to such rules and
          regulations, although the Company believes that the disclosures are
          adequate to make the information presented not misleading.

          These statements reflect all adjustments, consisting of normal
          recurring adjustments which, in the opinion of management, are
          necessary for fair presentation of the information contained therein.
          It is suggested that these consolidated financial statements be read
          in conjunction with the financial statements and notes thereto
          included in the Company's annual report for the year ended June 30,
          2002. The Company follows the same accounting policies in preparation
          of interim reports.


                                        9
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
------------------------------------------------------------

          Results of operations for the interim periods are not indicative of
          annual results.

          Nature of Operations
          Able Oil Company, Able Melbourne and Able Energy New York, Inc. are
          full service oil companies that market and distribute home heating
          oil, diesel fuel and kerosene to residential and commercial customers
          operating in the northern New Jersey, Melbourne, Florida, and
          Warrensburg, New York respectively. Able Propane, installs propane
          tanks which it owns and sells propane for heating and cooking, along
          with other residential and commercial uses.

          The Company's operations are subject to seasonal fluctuations with a
          majority of the Company's business occurring in the late fall and
          winter months. Approximately 70% of the Company's revenues are earned
          and received from October through March, and the overwhelming majority
          of such revenues are derived from the sale of HVAC products and
          services and home heating fuel. However, the seasonality of the
          Company's business is offset, in part, by the increase in revenues
          from the sale of diesel and gasoline fuels during the spring and
          summer months due to the increased use of automobiles and construction
          apparatus.

          Inventories
          Inventories are valued at the lower of cost (first in, first out
          method) or market.

          Property and Equipment
          Property and equipment are stated at cost less accumulated
          depreciation. Depreciation is provided by using the straight-line
          method based upon the estimated useful lives of the assets (5 to 40
          years). Depreciation expense for the nine months ended March 31, 2003
          and 2002 amounted to $557,915 and $507,438, respectively.

          For income tax basis, depreciation is calculated by a combination of
          the straight-line and modified accelerated cost recovery systems
          established by the Tax Reform Act of 1986.

          Expenditures for maintenance and repairs are charged to expense as
          incurred whereas expenditures for renewals and betterments are
          capitalized.

          The cost and related accumulated depreciation of assets sold or
          otherwise disposed of during the period are removed from the accounts.
          Any gain or loss is reflected in the year of disposal.


                                       10
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
------------------------------------------------------------

          Web Site Development Costs
          Costs of $2,242,335 incurred in the developmental stage for computer
          hardware and software have been capitalized in accordance with
          accounting pronouncement SOP98-1. The costs are included in Property
          and Equipment and will be amortized on a straight line basis during
          the estimated useful life, 5 years. Operations commenced in October
          2000. Amortization for the nine months ended March 31, 2003 and 2002
          amounted to $332,114 and $326,152, respectively.

          Intangible Assets
          Intangibles are stated at cost and amortized as follows: Customer
          Lists of $571,000 related to the Connell's Fuel Oil Company
          acquisition on October 28, 1996, by Able Oil Company is being
          amortized over a straight-line period of 15 years. The current period
          amortization also includes a customer list of $39,850 and Covenant Not
          To Compete of $100,000 relating to the acquisition from B & B Fuels on
          August 27, 1999, is being amortized over a straight-line period of 10
          and 5 years, respectively. The amortization for the nine months ended
          March 31, 2003 and 2002 are $15,000 and $25,041, respectively.

          In July 2001, the Financial Accounting Standards Board ("FASB") issued
          Statement of Financial Accounting Standards No. 142, "Goodwill and
          Other Intangible Assets" ("SFAS 142"). SFAS 142 requires goodwill and
          other intangible assets to be tested for impairment under certain
          circumstances, and written off when impaired, rather than being
          amortized as previous standards required, as such, effective July 1,
          2001, the Customer List will no longer be amortized for financial
          statement purposes.

          For income tax basis, the Customer Lists and the Covenant Not To
          Compete are being amortized over a straight-line method of 15 years as
          per the Tax Reform Act of 1993.

          Use of Estimates
          The preparation of financial statements in conformity with generally
          accepted accounting principles requires management to make estimates
          and assumptions that affect the amounts reported in the financial
          statements and accompanying notes. Although these estimates are based
          on management's knowledge of current events and actions it may
          undertake in the future, they may ultimately differ from actual
          results.


                                       11
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
------------------------------------------------------------

          Income Taxes
          Effective January 1, 1997, all the subsidiaries, which were
          S-Corporations, terminated their S-Corporation elections. The
          subsidiaries are filing a consolidated tax return with Able Energy,
          Inc.

          Effective January 1, 1997, the Company has elected to provide for
          income taxes based on the provisions of Financial Accounting Standards
          Board ("FASB") Statement of Financial Accounting Standards ("SFAS")
          No. 109, "Accounting for Income Taxes", which requires recognition of
          deferred tax assets and liabilities for the expected future tax
          consequences of events that have been included in the financial
          statements and tax returns in different years. Under this method,
          deferred income tax assets and liabilities are determined based on the
          difference between the financial statement and tax bases of assets and
          liabilities using enacted tax rates in effect for the year in which
          the differences are expected to reverse.

          Concentrations of Credit Risk
          The Company performs on-going credit evaluations of its customers'
          financial conditions and requires no collateral from its customers.

          Financial instruments which potentially subject the Company to
          concentrations of credit risk consists of checking and savings
          accounts with several financial institutions in excess of insured
          limits. The excess above insured limits is approximately $186,316. The
          Company does not anticipate non-performance by the financial
          institutions.

          Cash
          For the purpose of the statement of cash flows, cash is defined as
          balances held in corporate checking accounts and money market
          accounts.

          Advertising Expense
          Advertising costs are expensed at the time the advertisement appears
          in various publications and other media. The expense was $341,961 and
          $343,342 for the nine months ended March 31, 2003 and 2002,
          respectively.

          Fair Value of Financial Instruments
          Carrying amounts of certain of the Company's financial instruments,
          including cash and cash equivalents, accrued compensation, and other
          accrued liabilities, approximate fair value because of their short
          maturities.


                                       12

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
------------------------------------------------------------

          Revenue Recognition
          Sales of fuel and heating equipment are recognized at the time of
          delivery to the customer, and sales of equipment are recognized at the
          time of installation. Revenue from repairs and maintenance service is
          recognized upon completion of the service. Payments received from
          customers for heating equipment service contracts are deferred and
          amortized into income over the term of the respective service
          contracts, on a straight line basis, which generally do not exceed one
          year.

          Computation of Net Income (Loss) per Share
          Basic net income (loss) per share is computed using the
          weighted-average number of common shares outstanding during the
          period. Diluted net income per share is computed using the
          weighted-average number of common and dilutive potential common shares
          outstanding during the period. Diluted net loss per share is computed
          using the weighted-average number of common shares and excludes
          dilutive potential common shares outstanding, as their effect is
          anti-dilutive. Dilutive potential common shares primarily consist of
          employee stock options.

          Impairment of Long-Lived Assets
          Long-lived assets to be held and used are reviewed for impairment
          whenever events or changes in circumstances indicate that the carrying
          amount of such assets may not be recoverable. Measurement of an
          impairment loss for long-lived assets that management expects to hold
          and use is based on the fair value of the asset. Long-lived assets to
          be disposed of are reported at the lower of carrying amount or fair
          value less costs to sell.

          Recent Accounting Pronouncements
          In June 2001, FASB approved two new pronouncements: SFAS No. 141,
          "Business Combinations", and SFAS No. 142, "Goodwill and Other
          Intangible Assets". SFAS No. 141 applies to all business combinations
          with a closing date after June 30, 2001. This Statement eliminates the
          pooling-of-interests method of accounting and further clarifies the
          criteria for recognition of intangible assets separately from
          goodwill.

          SFAS No. 142 eliminates the amortization of goodwill and
          indefinite-lived intangible assets and initiates an annual review for
          impairment. Identifiable intangible assets with a determinable useful
          life will continue to be amortized. The amortization provisions apply
          to goodwill and other intangible assets acquired after June 30, 2001.
          Goodwill and other intangible assets acquired prior to June 30, 2001
          will be affected upon adoption. The Company has adopted SFAS No. 142
          effective July 1, 2001, which will require the Company to cease
          amortization of its remaining net customer lists balance and to
          perform an impairment test of its existing customer lists and any
          other intangible assets based on a fair value concept.


                                       13
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
------------------------------------------------------------

          Recent Accounting Pronouncements (cont'd)
          The Company has reviewed the provisions of these Statements. It is
          management's assessment that customer lists impairment will not result
          upon adoption. As of June 30, 2001, the Company has net unamortized
          customer lists of $422,728. Amortization expense of the customer list
          was $20,125 for the six month short year ended June 30, 2001 and
          $42,052 for the full year ended December 31, 2000.

NOTE 2   NOTES RECEIVABLE
-------------------------

          A. The Company has a Receivable from Able Montgomery, Inc. and Andrew
          W. Schmidt related to the sale of Able Montgomery, Inc. to Schmidt,
          and truck financed by Able Energy, Inc. No payments of principal or
          interest had been received for more than one year. A new note was
          drawn dated June 15, 2000 for $170,000, including the prior balance,
          plus accrued interest. The Note bears interest at 9.5% per annum and
          payments commence October 1, 2000. The payments will be monthly in
          varying amount each year with a final payment of $55,981.07 due
          September 1, 2010. No payments were received in the year ended
          December 31, 2000. In February 2001, two (2) payments were received in
          the amount $2,691.66, interest only. In September 2001, $15,124.97 was
          received covering payments from December 2000 through October 2001,
          representing interest of $14,804.13 and principal of $320.84. Payments
          were received in November and December 2002, representing December
          2001 and January 2002, a total of $3,333.34; interest of $2,678.88,
          and principal of $654.46.

          The note is secured by a pledge and security agreement and stock
          purchase agreement (Stock of Able Montgomery, Inc.), dated December
          31, 1998, and the assets of Andrew W. Schmidt with the note dated June
          15, 2000. The income on the sale of the company in December 1998 and
          the accrued interest on the drawing of the new note are shown as
          deferred income in the amount of $79,679.18 to be realized on
          collection of the notes.

          Maturities of the Note Receivable are as follows:

              For the 12 Months Ending
                      March 31,                      Principal Amount
                      ---------                      ----------------
                        2003                              $  17,544
                        2004                                 11,116
                        2005                                 12,219
                        2006                                 13,432
                        2007                                 14,764
                        Balance                              99,626
                                                          ---------
                                 Total                    $ 168,701
                                                          =========

                                       14

<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 2   NOTES RECEIVABLE (CONT'D)
----------------------------------

     B.   Able Oil Company has three (3) Notes Receivable for the sale of oil
          delivery trucks to independent drivers who also deliver oil for the
          Company. The Notes bear interest at the rate of 12% per annum. Two
          notes began December 1998 and one began February 1999. The Notes are
          payable eight (8) months per year September through April, the oil
          delivery season.

          Maturities of these Notes Receivable are as follows:

              For the 12 Months Ending
                      March 31,                      Principal Amount
                      ---------                      ----------------
                         2004                            $  28,046
                         2005                               21,844
                         2006                                7,091
                         2007                                7,712
                         2008                                1,976
                                                         ---------
                                 Total                   $  66,669
                                                         =========

NOTE 3   INVENTORIES

              Items                               March 31,        June 30,
              -----                                 2003             2002
                                                    ----             ----

              Heating Oil                         $ 304,704        $ 141,114
              Diesel Fuel                            39,868           21,642
              Kerosene                               15,557            6,220
              Propane                                11,790           12,343
              Parts, Supplies and Equipment         583,458          224,105
                                                  ---------        ---------
                   Total                          $ 955,377        $ 405,424
                                                  =========        =========

NOTE 4   NOTES PAYABLE BANK

          On October 22, 2001, the Company and its subsidiaries, either as
          Borrower or Guarantor, entered into a loan and security Agreement with
          Fleet National Bank. The bank is providing the following credit
          facility.

          A borrowing base of 75% of Eligible Accounts Receivable, as defined in
          the Agreement, plus $500,000 against the value of the Company's
          customer list, for a total amount of $1,500,000. The revolving credit
          may also be used for Letters of Credit, with the lender's approval.

                                       15
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 4   NOTES PAYABLE BANK (CONT'D)

          The Letters of Credit will have an annual fee of 1.25% of the face
          value of each Letter of Credit. The applicable interest rate on the
          revolving credit advances will be the bank's prime rate or Libor
          interest rate, plus 2.75%, see below increase in interest rate.
          Interest is to be paid on the amount advanced on the last day of each
          month.

          As security for the performance of this Agreement, the other Loan
          Documents and the payment of the Liabilities, each Borrower and
          Guarantor grants, pledges and assigns to Lender a security interest in
          all assets of such Borrower or Guarantor, whether now owned or
          hereafter acquired including, without limitation, (a) all Accounts,
          Goods, Chattel Paper, Equipment, Documents, Deposits, Instruments,
          General Intangibles and Payment Intangibles (including, but not
          limited to, any and all interests in trademarks, service marks,
          patents, licenses, permits, and copyrights), (b) all inventory of
          Borrowers, if any, held by any Borrowers for sale or lease or to be
          furnished under contracts of service, (c) all Books and Records, (d)
          any Account maintained by any Borrower with Lender and all cash held
          therein, and (e) all proceeds and products of the foregoing, including
          casualty insurance thereon (collectively, the "Collateral").

          The Agreement provides for covenants as follows:

          1.   Use of proceeds only for Working Capital, Letters of Credit and
               for acquisitions with Lender's prior written consent.
          2.   Financial information to be furnished either annually, quarterly
               or monthly.
          3.   Financial covenants to be tested as of the end of each fiscal
               quarter.
          4.   Limitations on loans and investments.
          5.   Compliance with laws and environmental matters.
          6.   Limitations on Borrowing.
          7.   Can not declare or pay any dividends.

          All of the above and other items as per article VI of the Agreement.
          The Agreement has a current expiration date of November 30, 2002.
          Fleet Bank did not renew the credit facility upon expiration of the
          Agreement on November 30, 2002. Effective December 1, 2002, the bank
          is charging an additional annual interest of 4% as the Note is in
          default. The total current interest rate charged is currently 8.25%
          per annum. The Company and Lender have entered into a Forbearance
          Agreement, where the Lender is willing to forbear until May 31, 2003
          from exercising its rights and remedies. The Lender will receive a
          forbearance fee of $50,000 at May 31, 2003, reduced by $2,500 for each
          week prior to May 31, 2003, that the credit facility and all charges
          are paid in full, with a minimum forbearance fee of $15,000. The
          interest charged is at 8.25% per annum. The principal amount
          outstanding is $1,270,000. Interest for the nine months ended March
          31, 2003 was $63,207.

                                       16
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 5   NOTES PAYABLE

     A.   The Company has borrowed $500,000 from an unrelated individual. The
          Note was dated June 26, 2001 with interest at 12% per annum. The
          interest will be paid monthly at $5,000 per month commencing on August
          1, 2001. The Note will mature on June 26, 2002 unless the borrower
          (the Company), at its option, elects to extend the maturity date to
          December 26, 2002. The Company has exercised its option and has
          extended the Note to December 26, 2002. The lender has granted the
          Company an additional extension at the same terms to June 26, 2003.
          The Note may be prepaid in whole or part from time-to-time without
          penalty. No principal payments have been made on the Note. At the
          maturity date, a final payment of the unpaid principal and interest
          shall be due and payable. In connection with this Note, the Company
          has issued the lender warrants to purchase 40,000 shares of its common
          stock at $4 per share. The warrants vest immediately and must be
          exercised no later than June 26, 2004. The warrants have not been
          registered under the Securities Act of 1933. On January 3, 2003, the
          Company borrowed an additional $100,000 from the same individual. The
          $100,000 plus $7,000 interest was repaid on April 21, 2003.

     B.   The Company has borrowed $750,000 from an unrelated company. The
          mortgage and note are dated September 13, 2002. The term of the note
          is for one (1) year. Payments of interest only on the outstanding
          principal balance shall be paid monthly at a rate of 10%. The first
          payment was paid on November 1, 2002 and on the first day of each
          month thereafter until October 1, 2003, when the Note shall mature and
          all principal and accrued interest shall be due and payable in full.

          Prepayment Penalty - in the event borrower makes a voluntary principal
          payment during the term of this note, borrower shall pay to the lender
          a premium equal to three (3) monthly payments of interest on the note.
          The note is collateralized by a mortgage dated September 13, 2002 from
          Able Energy Terminal, LLC, a wholly owned subsidiary, which is a
          second mortgage on the property at 344 Route 46, Rockaway, NJ and also
          by all leases and rents related to the property. The lender has been
          issued a stock purchase warrant for 100,000 shares at $4 per share.
          The warrant has not been registered under the Securities Act of 1933.
          The Company has granted the holder piggy-back registration rights for
          the Common Stock underlying the warrant on its next registration
          statement. This warrant does not entitle the holder to any of the
          rights of a stockholder of the Company. Unless previously exercised,
          the warrants will expire on September 13, 2004.

NOTE 6   LONG-TERM DEBT

          Mortgage note payable dated, August 27, 1999, related to the purchase
          of B & B Fuels facility and equipment. The total note was $145,000.
          The note is payable in the monthly amount of principal and interest of
          $1,721.18 with and interest rate of 7.5% per annum. The initial
          payment was made on September 27, 1999, and continues monthly until
          August 27, 2009 which is the final payment. The note is secured by a
          mortgage made by Able Energy New York, Inc. on property at 2 and 4
          Green Terrace and 4 Horicon Avenue, Town of Warrensburg, Warren
          County, New York. The balance due on this Note at March 31, 2003 was
          $104,940.

                                       17
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 6   LONG-TERM DEBT (CONT'D)
--------------------------------

          Mortgage note payable dated, August 31, 1999, related to the purchase
          of the facility and equipment in Rockaway, New Jersey by Able Energy
          Terminal, LLC ("Terminal"). The note is in the amount of $650,000.

          Pursuant to Section 4.4 of the Agreement of Sale to purchase the
          Terminal, , the Principal Sum of the $650,000 Note shall be reduced by
          an amount equal to one-half of all sums expended by Borrower on the
          investigation and remediation of the property provided, however, that
          the amount of said reduction shall not exceed $250,000 (the
          "Remediation Amount").

          The "Principal Sum: Less the "Remediation Amount" shall be an amount
          equal to $400,000 (the "Reduced Principal Sum"). The Reduced Principal
          Sum shall bear interest from the date hereof at the rate of 8.25% per
          annum. Any portion of the Remediation Amount not utilized in the
          investigation and remediation of the property shall not begin to
          accrue interest until such time that (i) a "No Further Action Letter"
          is obtained from the Department of Environmental Protection and (ii)
          an outstanding lawsuit concerning the property is resolved through
          settlement or litigation (subject to no further appeals). All payments
          on this Note shall be applied first to the payment of interest, with
          any balance to the payment to reduction of the reduced Principal Sum.

          Based upon an amendment, dated November 5, 2001, and commencing with
          interest due December 1, 2001, interest will be paid at the rate of
          8.25% on the principal sum of $650,000. Only interest is required to
          be paid and the principal is due on July 31, 2004 (See Note 10).

          The Note is collateralized by the property and equipment purchased and
          assignment of the leases. The balance due on this Note at March 31,
          2003 was $650,000.





                                       18
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 7   INCOME TAXES
---------------------

          Effective January 1, 1997, the Company adopted Statement of Financial
          Accounting Standards No. 109, Accounting for Income Taxes.

          The differences between the statutory Federal Income Tax and Income
          Taxes Continuing Operation is accounted for as follows:

<TABLE>
<CAPTION>
                                                                               2003
                                                                               ----

                                                                         Amount       Percent
                                                                         ------       -------
<S>                                                                    <C>             <C>
    Statutory Federal Income Tax                                       $ 513,619       34.0%
    Federal Income Tax Reduction due to Carryforward
       loss                                                             (536,639)
    State Income Tax (Note X)                                            159,980        5.9
    State Income Tax Reduction due to Carryforward
       loss                                                             (169,850)
                                                                      ----------

    Income Taxes                                                      $  (32,890)      39.9%
                                                                      ==========       ====

    Income Taxes consist of:
     Current                                                          $       -
     Deferred                                                            (32,890)
                                                                      ----------
        Total                                                         $  (32,890)
                                                                      ==========
<CAPTION>

                                                                               2003
                                                                               ----

                                                                                    Percent of
                                                                                      Pretax
                                                                         Amount       Income
                                                                         ------       ------
<S>                                                                    <C>             <C>
    Statutory Federal Income Tax                                      $   (2,020)      15.0%
    State Income Tax                                                        (865)       6.5
                                                                      ----------

    Income Taxes                                                      $   (2,885)      21.5%
                                                                      ==========       ====
    Income Taxes consists of:
    Current                                                           $        -
    Deferred                                                              (2,885)
                                                                      ----------
         Total                                                        $   (2,885)
                                                                      ==========
</TABLE>


(Note X)  The State of New Jersey has suspended the use of carryforward losses
          for the years 2002 and 2003. As such, state income taxes have been
          shown as a deferred asset and as income taxes payable. The Company has
          a New Jersey carryforward of approximately $3,140,000. Under current
          New Jersey law, the carryforward will be available after 2003, the
          Company's fiscal year ending June 30, 2005.

                                       19
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 7   INCOME TAXES (CONT'D)
------------------------------

          The types of temporary differences between the tax bases of assets and
          liabilities and their financial reporting amounts that give rise to a
          significant portion of the deferred tax liability and deferred tax
          asset and their approximate tax effects are as follows at:

<TABLE>
<CAPTION>
                                                                         March 31, 2003
                                                                         --------------
                                                                 Temporary                Tax
                                                                Difference              Effect
                                                                ----------              ------
<S>                                                             <C>                    <C>
     Depreciation and Amortization                              $ (206,980)            $(65,222)
     Allowance for Doubtful Accounts                                397,358              105,068
     Gain on Sale of Subsidiary                                      18,766                4,035
     New Jersey Net Operating Loss Carryforward                   1,777,505              159,980
     (See Note X, Prior Page)
<CAPTION>
                                                                          June 30, 2002
                                                                          -------------
                                                                 Temporary                Tax
                                                                Difference              Effect
                                                                ----------              ------
<S>                                                             <C>                    <C>
     Depreciation and Amortization                              $ (169,441)            $ (54,712)
     Allowance for Doubtful Accounts                               242,358                61,668
     Gain on Sale of Subsidiary                                     18,766                 4,035
</TABLE>

          Able Energy, Inc., et al, open years are December 31, 1999, 2000 and
          June 30, 2001 and 2002. The Company has a Federal net operating loss
          carryforward of approximately $2,740,000. The net operating loss
          expires between June 30, 2019 and 2021.

          These carryforward losses are available to offset future taxable
          income, if any. The Company's utilization of this carryforward against
          future taxable income is subject to the Company having profitable
          operations or sale of Company assets which create taxable income. For
          the nine months ended March 31, 2003, $1,510,644 of net income has
          been utilized against the net operating loss carry froward. At this
          time, the Company believes that a full valuation allowance should be
          provided. The component of the deferred tax asset as of March 31, 2003
          are as follows:

               Net Operating Loss Carryforward - Tax Effect          $430,740
               Valuation Allowance                                    (430,740)
                                                                     ---------
               Net Deferred Tax based upon Net
                   Operating Loss Carryforward                       $   - 0 -
                                                                     =========

                                       20
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 8   NOTE RECEIVABLE - SUBSIDIARY
-------------------------------------

          The Company has a Note Receivable from PriceEnergy.Com, Inc. for
          advances made in the development of the Website, including hardware
          and software costs. All of PriceEnergy.Com, Inc.'s assets are pledged
          as collateral to Able Energy, Inc. The amount of the note is
          $1,350,000 dated November 1, 2000 with interest at 8% per annum
          payable quarterly. Principal payments to begin two years after the
          date of the Note, November 1, 2002. Through March 31, 2003, no
          principal has been paid. Interest, in the amount of $54,000 has been
          accrued for the nine months ended March 31, 2003. No interest was
          accrued for the three months ended March 31, 2003 as the note is non
          performing. Unpaid accrued interest due through March 31, 2003 is
          $234,000. The Note, accrued interest and interest expense have been
          eliminated in the consolidated financial statements (See Notes 1 and
          13). Able Oil Company has a Note Receivable originally dated September
          30, 2002 in the amount of $1,510,372.73 from PriceEnergy.Com, Inc. The
          Note has been updated for transactions during the six months ended
          March 31, 2003, resulting in a balance of $1,914,054.91 with interest
          at 8% per annum, to be paid quarterly, and was paid in the amount of
          $30,000. Principal payments to begin one year after date of Note,
          October 1, 2003, and continue monthly thereafter. The Note is the
          result of the transference of the unpaid accounts receivable which
          resulted from the sale of heating oil through PriceEnergy.Com, Inc.
          Able Oil Company has a second position as collateral in all of the
          assets of PriceEnergy.Com, Inc. to Able Energy, Inc. Interest in the
          amount of $30,000 has been recorded at March 31, 2003. No interest has
          been recorded for the quarter ended March 31, 2003. Any payments will
          go to pay principal. The note receivable accrued interest and interest
          income have been eliminated in consolidation against the amounts on
          PriceEnergy.Com, Inc.

NOTE 9   PROFIT SHARING PLAN
----------------------------

          Effective January 1, 1997, Able Oil Company established a Qualified
          Profit Sharing Plan under Internal Revenue Code Section 401-K. The
          Company matches 25% of qualified employee contributions. The expense
          was $18,219 (2003) and $23,331 (2002), for the nine months ended March
          31.

NOTE 10  COMMITMENTS AND CONTINGENCIES
--------------------------------------

          The Company is subject to laws and regulations relating to the
          protection of the environment. While it is not possible to quantify
          with certainty the potential impact of actions regarding environmental
          matters, in the opinion of management, compliance with the present
          environmental protection laws will not have a material adverse effect
          on the financial condition, competitive position, or capital
          expenditures of the Company.

                                       21
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 10  COMMITMENTS AND CONTINGENCIES (CONT'D)
-----------------------------------------------

          In accordance with the agreement on the purchase of the property on
          Route 46, Rockaway, New Jersey by Able Energy Terminal, LLC, the
          purchaser shall commence after the closing, the investigation and
          remediation of the property and any hazardous substances emanating
          from the property in order to obtain a No Further Action letter from
          the New Jersey Department of Environmental Protection (NJDEP). The
          purchaser will also pursue recovery of all costs and damages related
          thereto in the lawsuit by the seller against a former tenant on the
          purchased property. Purchaser will assume all responsibility and
          direction for the lawsuit, subject to the sharing of any recoveries
          from the lawsuit with the seller, 50-50.

          The seller by reduction of its mortgage will pay costs related to the
          above up to $250,000 (see Note 6). A settlement has been achieved by
          the Company with regard to the lawsuit. The settlement provides for a
          lump sum payment of $397,500 from the defendants to the Company. In
          return, the defendants require a release from the Estate (the Seller)
          and a release and indemnification from the Company. The defendants
          will provide a release to Able Energy and the Estate. Pursuant to the
          original agreement, the Estate receives 50% of the settlement amount,
          net of attorney fees.

          This has been amended by an agreement dated November 5, 2001. The
          entire settlement, net of attorney fees, was collected and placed in
          an attorney's escrow account for payment of all investigation and
          remediation costs. Able Energy Terminal, LLC has incurred costs of
          $60,667 to March 31, 2003 which are included in Prepaid Expenses and
          must be presented to the attorney for reimbursement.

          The costs of the cleanup pursuant to the Agreement of Sale must be
          shared equally (50/50) by the seller and purchaser up to Seller's cap
          of $250,000. Seller's contribution to the cleanup is in the form of a
          reduction to the Note and not by direct payments. In the opinion of
          management, the Company will not sustain costs in this matter which
          will have a material adverse effect on its financial condition.

          Price Energy.Com, Inc., a subsidiary, has commenced suit against
          ThinkSpark Corporation on Consulting Services Agreement, dated June 2,
          2000. ThinkSpark has filed a counterclaim. On January 11, 2002, Price
          Energy and ThinkSpark agreed to settle their dispute. Price Energy
          will pay ThinkSpark $30,000 and there will be mutual releases of all
          claims as well as dismissals of the pending actions in New Jersey and
          Texas. The liability as of March 31, 2003 has been paid in full.

          Following an explosion and fire that occurred at the Able Energy
          Facility in Newton, NJ on March 14, (see Note 20), and through the
          subsequent clean up efforts, Able Energy has cooperated fully with all
          local, state and federal agencies in their investigations into the
          cause of this accident.

                                       22
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 10  COMMITMENTS AND CONTINGENCIES (CONT'D)
-----------------------------------------------

          On April 3, 2003, Able Energy received a Notice Of Violation from the
          New Jersey Department of Community Affairs ("DCA") citing a total of
          13 violations to the New Jersey Administrative Code, Liquefied
          Petroleum Gas. Twelve of the violations were assessed a penalty of
          $500 each. One of the violations, regarding the liquid transfer from
          one truck to another truck, was assessed a penalty of $408,000, for a
          total of $414,000.

          The DCA document is currently under review by counsel. Based upon
          initial review, the company disagrees with many of the findings of the
          report and disputes many of the allegations. The company intends to
          contest the DCA Notice of Violation and the assessed penalties.

          The Company in the normal course of business has been involved in
          several suits. Suits in which the company was involved have been
          settled out of court at agreeable terms, according to management. No
          suits are currently in litigation.

NOTE 11  OPERATING LEASE
------------------------

          Able Energy Terminal, LLC, has acquired the following lease on the
          property it purchased on Route 46 in Rockaway, New Jersey.

          The lease with Able Oil Company, a wholly owned subsidiary of Able
          Energy, Inc., has an expiration date of July 31, 2004. The lease
          provides for a monthly payment of $1,200 plus a one cent per gallon
          through put, as per a monthly rack meter reading.

          Estimated future rents are $14,400 per year, plus the one cent per
          gallon through put charges per the monthly rack meter readings.

          The Company leased 9,800 square feet in the Rockaway Business Centre
          on Green Pond Road in Rockaway, New Jersey. The facility will be used
          as a call center and will combine the administrative operations in New
          Jersey in one facility. The lease has a term of five (5) years from
          August 1, 2000 through July 31, 2005.

          The rent for the first year is $7,145.83 per month and the second
          through fifth year is $7,431.67 per month, plus 20.5% of the
          building's annual operational costs and it's portion of utilities. The
          current monthly rent, including
                  Common Area Charges, is $9,799.04 per month.


                                       23
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 11  OPERATING LEASE
------------------------

          The lease does not contain any option for renewal. The rent expense
          was $86,901 for the nine months ended March 31, 2003. The estimated
          future rents are as follows:

                   Year Ended June 30,
                           2003                            $ 29,397
                           2004                             117,588
                           2005                             117,588
                           July 2005                          9,799
                                                           --------
                                Total                      $274,372
                                                           ========

          The following summarizes the month to month operating leases for the
          other subsidiaries:

              Able Oil Melbourne                 $500.00, per month
                                                 Total rent expense, $4,500
              Able Energy New York               $600.00, per month
                                                 Total rent expense, $5,400
NOTE 12  FRANCHISING

          The Company sells franchises permitting the operation of a franchised
          business specializing in residential and commercial sales of fuel oil,
          diesel fuel, gasoline, propane and related services. The Company will
          provide training, advertising and use of Able credit for the purchase
          of product, among other things, as specified in the Agreement. The
          franchisee has an option to sell the business back to the Company
          after two (2) years of operations for a price calculated per the
          Agreement. The Company signed its first franchise agreement in
          September 2000. On June 29, 2001, PriceEnergy.Com franchising, LLC, a
          subsidiary, signed its first franchise agreement. The franchisee will
          operate a B-franchised business, using the proprietary marks and a
          license from PriceEnergy.Com, Inc. and will establish the presence of
          the franchisee's company on the PriceEnergy Internet Website. The
          franchisee will have the exclusive territory of Fairfield County,
          Connecticut as designated in the agreement. The franchisee paid the
          following amounts in July 2001:

               1.   A non-refundable franchise fee of $25,000.
               2.   An advertising deposit of $15,000 and a $5,000 escrow
                    deposit.


                                       24
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 12  FRANCHISING (CONT'D)
-----------------------------

          The non-refundable fee of $25,000 has been recorded as Other Income in
          the period ended December 31, 2001. The advertising deposit was
          credited to advertising expense in the year ended June 30, 2002. The
          $5,000 Escrow Deposit was returned in September 2002.

NOTE 13  RELATED PARTY TRANSACTIONS
-----------------------------------

          $44,690 is due from the major Shareholder/Officer of the Company. This
          amount is evidenced by a Note bearing interest at a rate of 6% between
          the Shareholder and the Company. This Shareholder has loaned the
          Company a total of $380,000 as of March 31, 2003, as evidenced by a
          Demand Note with interest at 6% per annum, which can be paid all or in
          part at any time without penalty. The balance of the new note is
          $368,604 at March 31, 2003

          The following officers of this Company own stock in the subsidiary,
          PriceEnergy.Com, Inc., which they incorporated in November 1999.

                Chief Executive Officer                     23.5%
                President                                    3.6%

          No capital contributions have been made by these officers (See Notes 1
          and 8).

NOTE 14  EARNINGS PER SHARE
---------------------------

          The shares used in the computation of the Company's basic and diluted
          Earnings Per Common Share are as follows:

<TABLE>
<CAPTION>
                                                                      March 31,        March 31,
                                                                        2003             2002
                                                                        ----             ----
<S>                                                                  <C>              <C>
           Weighted Average of Common Shares Outstanding
             Used in Basic Earnings Per Share                        2,009,814        2,000,921

           Dilutive Effect of:
             Employee Stock Options                                     42,937           54,891
             Stock Warrants                                                  -                -
                                                                     ---------        ---------
           Weighted Average Common Shares Outstanding
             Used in Diluted Earnings Per Share                      2,052,751        2,055,812
                                                                     =========        =========
</TABLE>

NOTE 15  STOCK OPTION PLANS
---------------------------

          The Company has stock option plans under which stock options may be
          issued to officers, key employees, and non-employee directors to
          purchase shares of the Company's authorized but unissued common stock.
          The Company also has a stock option plan under which stock options may
          be granted to employees and officers.

                                       25
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 15  STOCK OPTION PLANS
---------------------------

          Options granted currently expire no later than 3 to 5 years from the
          grant and have vesting periods from none to 25% at grant and 25% each
          anniversary.

<TABLE>
<CAPTION>
                                                                        Outstanding Options
                                                                        -------------------

                                      Number of Shares            Exercise Price             Term
                                      ----------------            --------------             ----
<S>                                             <C>                        <C>              <C>
          January 6, 2000
             Grants                             56,000                     $5.00            5 years
             Exercises                               0

          December 1, 2000
             Grants                             48,090                     $3.25            3 years
             Exercises                           1,250

          December 21, 2000
             Grants                             60,000                     $1.80            5 years
             Exercises                               0

             Grants                             23,000                     $2.25            5 years
             Exercises                               0
</TABLE>

16       STOCK WARRANTS
-----------------------

          The Company has issued stock warrants as follows:

     1.   60,000 Common Stock Purchase Warrants at $4.81 per share, effective
          August 31, 2000, and expiring August 31, 2005, to Andrew Alexander
          Wise & Company in connection with an investment banking advisory
          agreement with the Company, dated July 1, 2000.

     2.   40,000 Common Stock Purchase Warrants at $4.00 per share, effective
          June 26, 2001 and expiring June 26, 2004, in connection with a
          $500,000 Note Payable (See Note 5). These warrants have not been
          registered under the Securities Act of 1933.

     3.   100,000 Common Stock Purchase Warrants at $4.00 per share, effective
          September 13, 2002, and expiring September 13, 2004, in connection
          with a $750,000 Note Payable (see Note 5).

          The 200,000 warrants to purchase shares of common stock were
          outstanding during the fourth quarter of 2002 and were not included in
          the computation of diluted EPS as the warrants' have not been
          registered under the Securities Act of 1933.

                                       26
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 17  STOCK ISSUANCE
-----------------------

          During the quarter ended September 30, 2002, 6000 shares of Common
          Stock were issued to the directors for services rendered during the
          year 2001, and charged at the fair market value as Directors' Fees.
          The share price was $4.00
                  per share for a total Directors' Fees of $24,000.

NOTE 18   COMPENSATED ABSENCES
------------------------------

          There has been no liability accrued for compensated absences; as in
          accordance with Company policy, all compensated absences, accrued
          vacation and sick payment must be used by December 31st. At March 31,
          2003, any amount for accrual of the above is not material and has not
          been computed.

NOTE 19   CASH FLOW INFORMATION
-------------------------------

          The Directors received Common Stock as payment of Directors' Fees. No
          cash was received or paid. The Company lost fixed assets in the
          explosion at its Newton, NJ facility. As of March 31, 2003, there is
          no direct effect on cash (See Note 21).

NOTE 20   OTHER EVENTS
----------------------

          On March 14, 2003, Able Energy experienced an explosion and fire at
          its Newton, New Jersey facility that resulted in the destruction of an
          office building on the site, as well as damage to 18 company vehicles
          and neighboring properties. Fortunately, there were no serious
          physical injuries.

          The preliminary results of the company's investigation indicate that
          the explosion was an accident that occurred as a result of a
          combination of human error and mechanical malfunction.

          The Company was able to resume operations the following morning from
          other company facilities, avoiding any interruption of service to
          customers. Based upon current loss information, the company believes
          that the amount of its insurance coverage is sufficient to cover its
          potential liabilities for losses and damage.

          Final clean-up of the site has concluded. Future plans for the Newton
          facility have not yet been determined.


                                       27
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

                        JUNE 30, 2002 AND MARCH 31, 2003

NOTE 21  INSURANCE CLAIM
------------------------

          The Company suffered a loss of a building, trucks, leasehold
          improvements, product inventory and equipment as well as cost of
          cleanup and restoration. The Company has filed an insurance claim. The
          insurance adjusters are in the process of finalizing the amounts to be
          paid to the Company. The estimated costs are $577,416 and is currently
          shown as an Insurance Claim Receivable on the balance sheet.
          Management anticipates the insurance recovery will cover the company
          costs.

NOTE 22  OTHER EXPENSE
----------------------

          The Company has been assessed a penalty by the New Jersey Department
          of Community Affairs (DCA) (see Note 10). The total amount of $414,000
          has been recorded as Other Expense and an accrued liability.













                                      -28-

<PAGE>

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

                       ABLE ENERGY, INC. AND SUBSIDIARIES

          Statements in this Quarterly Report on Form 10-Q concerning the
          Company's outlook or future economic performance, anticipated
          profitability, gross billings, expenses or other financial items, and
          statements concerning assumptions made or exceptions to any future
          events, conditions, performance or other matters are "forward looking
          statements," as that term is defined under the Federal Securities
          Laws. Forward-looking statements are subject to risks, uncertainties,
          and other factors that would cause actual results to differ materially
          from those stated in such statements. Such risks, and uncertainties
          and factors include, but are not limited to: (i) changes in external
          competitive market factors or trends in the Company's results of
          operation; (ii) unanticipated working capital or other cash
          requirements and (iii) changes in the Company's business strategy or
          an inability to execute its competitive factors that may prevent the
          Company from competing successfully in the marketplace.

          REVENUE RECOGNITION

          Sales of fuel and heating equipment are recognized at the time of
          delivery to the customer, and sales of equipment are recognized at the
          time of installation. Revenue from repairs and maintenance service is
          recognized upon completion of the service. Payments received from
          customers for heating equipment service contracts are deferred and
          amortized into income over the term of the respective service
          contracts, on a straight-line basis, which generally do not exceed one
          year.

          RESULTS OF OPERATIONS

          NINE MONTHS ENDED MARCH 31, 2003, COMPARED TO THE NINE MONTHS ENDED
          MARCH 31, 2002.

          The Company reported revenues of $38,177,651 for the nine months ended
          March 31, 2003, an increase of 78.66% over the prior year's revenues
          for the same nine-month period. The sales increased by $16,808,659.
          This increase can be attributed primarily to the Company's continued
          aggressive sales activities, which resulted in a larger customer base
          as well as an increase in the sales of commercial diesel fuels and
          gasoline. The Company's primary delivery territory also experienced
          much colder weather and higher margins via a more favorable pricing
          structure. A higher commodity cost during this past season due to
          economic unrest, and the fear that war could disrupt the world's oil
          supply also impacted revenues. The Company experienced a sales
          increase in its two main commodities during the nine-month period
          ended March 31. Sales of #2 heating oil, the Company's main product
          line, grew in revenue dollars by 58.7%. Propane Gas sales, in dollars,
          grew by 64.0% for the first nine months over the same period in the
          prior year. In addition, the Company increased its sales of new
          equipment and HVAC services for the nine months by 67.0%. In addition,
          sales of on-road diesel, off-road diesel, and gasoline also
          experienced strong revenue growth. Sustained growth in these
          non-heating related products and services will also help even out the
          seasonality of the Company's business when heating related sales are
          generally down. Management has also committed to a realistic gross
          margin percentage on these off-season products to allow for maximum
          profitability.

          Gross profit margin, as a percentage of revenues, for the nine months
          ended March 31, 2003, decreased by 1.59%, but Gross Profit in dollars
          increased $2,724,784 above the prior year's nine-month results. The
          increase in Gross Profit is primarily a result of the Company's margin
          management policy, which was put into effect in September of 2001, and
          is designed to maintain margins, by product segment, on each of the
          products and services that it markets to the consumer. This program is
          designed to promote product pricing that is in line with the specific
          type and degree of service provided.

<PAGE>

          Selling, General, and Administrative expenses, as a percent of sales,
          decreased by 7.47% from 18.41% in nine months ending March 31, 2002 to
          10.94% during the same period in 2003. The Company attributes this
          decrease to its continued commitment to controlling expenses,
          insurance, telephone, and advertising. Management will continue to
          monitor the fiscal budget against actual results on an ongoing basis
          in an effort to further reduce SG&A as a percentage of sales.

          Operating income for the nine months ended March 31, 2003 was
          $1,870,412, as compared to the Company's operating loss of ($557,416)
          for the nine months ended March 31, 2002. This operating profit for
          nine months was directly related to the increase in sales and gross
          margins, and lower percentage of operating costs in comparison to
          sales.

          Net income for the nine months ended March 31, 2003 was $1,275,747 as
          compared to the same period for the previous year loss of ($596,833).
          This net income was the result of an increase in the sale of heating
          oil, propane, and heating related products, higher gross margins and
          lower percentage of operating costs as compared to sales.

           RESULTS OF OPERATIONS

           THREE MONTHS ENDED MARCH 31, 2003, COMPARED TO THREE MONTHS
             ENDED MARCH 31, 2002:

<TABLE>
<CAPTION>
                                              March 31, 2003      March 31, 2002      % Inc / (Dec)
                                              --------------      --------------      -------------
<S>                                             <C>                   <C>                  <C>
           Sales                                $19,490,580           $8,800,243           121.48%

           Gross Profit Margin                    3,610,599            2,111,401            71.00%

           Selling General &                      1,747,490            1,367,605            27.78%
           Administrative Expense


           Income From Operations                 1,545,858              452,972           241.27%

           Net Income                             1,081,165              420,472           159.13%
</TABLE>

          The sales increases can be attributed to the Company's continued
          aggressive sales activities, which resulted in a larger customer base,
          colder weather during the reporting period, more sales of all product
          lines, and an increase in service work. The increased margin is the
          result of the Company's margin management policy instituted in
          September of 2001. Colder weather during this current quarter
          including temperatures that were 32% lower than the same period a year
          ago, a more favorable pricing structure as discussed earlier, and
          lower operating costs all contributed to the Company's operating
          profit and net income. The Company reported revenues for the third
          quarter of $19,490,580, an increase of 121.48% over the revenues of
          the third quarter a year ago. Sales increased by $10,690,337 due to an
          increase in heating degree days for the period as compared to the same
          quarter one year earlier, increased sales dollars per unit (gallon)
          due to an increase in the cost of the commodity, and the Company's
          continued uncompromising sales efforts.

          Total gross profit margin increased 71.00 % from the same period a
          year earlier from $2,111,401 in 2002 to $3,610,599 in the third fiscal
          quarter this year. The increase can be attributed to the dramatic
          increase in sales for the corresponding period along with continued
          focus on proper margin management.

          Selling, General, and Administrative expenses, as a percent of sales,
          decreased by 6.57% for the third quarter compared to last year. The
          Company experienced SG&A of $1,747,490 for the
<PAGE>

          period ending March 31, 2003 against $1,367,605 the same quarter for
          the year prior. This percentage decrease was due to continued efforts
          to contain expenses in key areas such as telecommunications,
          advertising, and insurance while handling a significant increase in
          sales for the period.

          Operating Income for the three-month period increased by $1,092,886
          from the quarter ending March 31, 2002. The Company had an operating
          income for the quarter ending March 31, 2002 of $452,972 as compared
          to operating income of $1,545,858 for the quarter ended March 31,
          2003. This operating income is due to the increased sales, increased
          gross profit, and expense containment efforts as noted above.

          OPERATIONAL EFFICIENCIES

          The Company believes that it will continue to increase the utilization
          of existing personnel and equipment, thus continuing to reduce
          expenses as a percent of sales, and increasing profitability, within
          its current business configuration.

          This current fiscal year represents the Company's second year of its
          margin management program designed to increase profitability without
          sacrificing customer appeal. The Company believes that there is value
          to the products and services that it provides to its consumers in
          varying levels based upon the specific needs of the consumer and the
          products provided. As evidenced by the margin performance this year to
          date, coupled with the increase in sales this program is working and
          has been expanded to include equipment sales/service.

          The Company will begin service billing utilizing a methodology known
          as "Flat Rate Pricing", an approach similar to that used in the
          automobile repair field. Flat rate pricing will be introduced in
          stages with the first phase beginning in the 2nd fiscal quarter of the
          current year. This system will give sales and service personnel the
          ability to offer the customer an easy to understand, "package
          approach" to repairs and equipment installations with one or two line
          billings per invoice. This system will interface with the Company's
          automated dispatch communications program that was introduced last
          year. It is anticipated that this system will be fully implemented
          within one year.

          RECENTLY IMPLEMENTED TECHNOLOGICAL PROCEDURES

          The Company has established goals, which will be accomplished through
          the implementation of some modern technologies that are currently
          being installed into the Company's existing infrastructure.

          The Company has introduced additional customer service technology to
          its Rockaway call and administrative center during the third fiscal
          quarter of 2002/2003. Able Energy management believes that by
          providing enhancements to its existing telephony hardware and in-house
          management, the Company's call center environment will be provided
          with the ability to respond to changing call patterns, both higher and
          lower, without the expense of clerical over-staffing to meet
          unrealized needs. New software now provides the customer with the
          option of placing an order via a voice activated technology. This will
          enable customers who simply wish to refill their fuel tank, the
          opportunity to quickly place an order 24 hours a day without the help
          of a live customer service representative.

          The Company is now beginning full implementation of the recently
          announced automated dispatch technology, which provides management
          with the ability to communicate with service technicians
          instantaneously. This system also is now performing billing functions
          at the customer's location as well as documenting payment data
          instantaneously. Additionally, management is now aware of the status
          of every on-duty worker and obtains real time reporting for stand-by,
          en route, and service work time. This enables the Company to maximize
          scheduling opportunities and eliminating service technician down time.

<PAGE>

          OPERATING SUBSIDIARY

          The company's new operating subsidiary, PriceEnergy with it state of
          the art order-processing platform, is now in its second full year of
          operation. This revolutionary proprietary technology is fully
          automated and allows for the removal of the inefficiencies associated
          with traditional heating oil companies within this industry. For the
          first nine months of this fiscal year, PriceEnergy generated 2,042,191
          incremental gallons, which were delivered by PriceEnergy's dealer
          network, which also includes Able Energy as a participating dealer. In
          November of 2002, PriceEnergy signed a contract with BJ's Wholesale
          Club to sell heating oil and other services in their club stores. On
          December 16th 2002, PriceEnergy began sales of Home Heating Oil in the
          initial BJ's stores. Gallons sold through this new venue have been
          increasing with each week. The Company is very pleased with these
          recent developments and the joint progress that has been made with
          this new "Channel Partner". The Company believes that this is the
          first of many prime retail opportunities to utilize the PriceEnergy
          operating platform to open new markets for the sales of heating oil,
          diesel fuel, and propane gas.

          EXPLOSION AND FIRE

          On March 14, 2003, Able Energy experienced an explosion and fire at
          its Newton, New Jersey facility that resulted in the destruction of an
          office building on the site, as well as damage to 18 company vehicles
          and neighboring properties. Fortunately, due to the immediate response
          by employees at the site, a quick evacuation of all personnel occurred
          prior to the explosion, preventing any serious injuries.

          The preliminary results of the company's investigation indicate that
          the explosion was an accident that occurred as a result of a
          combination of human error, mechanical malfunction, as well as the
          failure to follow prescribed state standards for propane delivery
          truck loading. On April 3, 2003, Able Energy received a Notice of
          Violation from the New Jersey Department of Community Affairs. The
          dollar amount of the assessed penalty totaled $414,000. Able Energy
          has contested the Notice of Violation as well as the assessed
          penalties with the State of New Jersey and is awaiting a hearing date.

          Able Energy has worked closely, and cooperated fully with all local
          and state officials in the clean up phase, tank testing process, and
          subsequent investigations. Strict and clear employee communications
          have taken place to reinforce compliance with all governmental
          regulations as well as company policy. The company has retained the
          assistance of Boyer Safety Services, experts in the propane industry;
          to hold safety-training sessions for all propane related employees.
          This training will be ongoing and will upgrade employee training to
          the most modern and up-to-date levels as well as reinforce Able
          Energy's commitment to operate all aspects of the company in a
          professional, responsible, and safe manner.

          Company operations have continued throughout the aftermath of the
          incident and management believes that it can fully recover to normal
          delivery operations this quarter from its alternate site in Rockaway,
          New Jersey.

          LIQUIDITY AND CAPITAL RESOURCES

          For the nine months ended March 31, 2003, compared to the nine months
          ended March 31, 2002, the Company's cash position decreased by
          $359,276 from $371,166 to $11,890. For the year ended June 30, 2002,
          cash was generated through collections of customer advance payments,
          and an increased loan from the bank. In the nine months ending March
          31, 2003, the Company entered into an agreement and received a loan of
          $750,000 from a private company and a loan in excess of $300,000 from
          the C.E.O. The Company is in discussions with a financial institution
          to obtain a term loan of $3 million to consolidate a large portion of
          its existing debt and also obtain a working capital line of credit of
          $2 million. This will enable the Company to continue to grow while
          strengthening its infrastructures.

<PAGE>

          SEASONALITY

          The Company's operations are subject to seasonal fluctuations, with a
          majority of the Company's business occurring in the late fall and
          winter months. Approximately 70% of the Company's revenues are earned
          and received from October through March, most of such revenues are
          derived from the sale of home heating products including propane gas
          and home heating oil. However the seasonality of the Company's
          business is offset, in part, by an increase in revenues from the sale
          of HVAC products and services, diesel and gasoline fuels during the
          spring and summer months, due to the increased use of automobiles and
          construction apparatus

          From May through September, Able Oil can experience considerable
          reduction of retail heating oil sales. Similarly, Able Propane can
          experience up to an 80% decrease in heating related propane sales
          during the months of April to September, this is offset somewhat by
          increased sales of propane gas used for pool heating, heating of
          domestic hot water in homes and fuel for outdoor cooking equipment.

          Over 90% of Able Melbourne's revenues are derived from the sale of
          diesel fuel for construction vehicles, and commercial and recreational
          sea-going vessels during Florida's fishing season, which begins in
          April and ends in November. Only a small percentage of Able
          Melbourne's revenues are derived from the sale of home heating fuel.
          Most of these sales occur from December through March, Florida's
          cooler months.

<PAGE>

<TABLE>
<CAPTION>
                                               ABLE ENERGY, INC. AND SUBSIDIARIES

                                                     SELECTED FINANCIAL DATA

                                                Nine Months Ended March 31,              Three Months Ended March 31,

                                                  2003                2002                 2003                 2002
                                                  ----                ----                 ----                 ----
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
<S>                                           <C>                 <C>                   <C>                 <C>
Sales                                         $38,177,651         $21,368,992           $19,490,580         $ 8,800,243

Gross Profit                                    6,960,342           4,235,558             3,610,599           2,111,401

Operating Income (Loss)                         1,870,412           (557,416)             1,545,858             452,972

Net Income (Loss)                               1,242,857           (596,833)             1,041,275             420,472

Basic Net Income (Loss) Per Share                     .63               (.30)                   .54                 .21

EBITDA (1)                                      2,368,334             301,215             1,449,109             743,796

<CAPTION>

CONSOLIDATED BALANCE SHEET                    AT MARCH 31,        AT MARCH 31,
--------------------------
                                                   2003                2002
                                                   ----                ----
<S>                                           <C>                 <C>
Cash                                          $    11,890         $   371,166

Current Assets                                  6,666,013           3,418,986

Current Liabilities                             7,320,312           5,076,281

Total Assets                                   13,703,983          10,891,470

Long Term Liabilities                           1,822,784           1,649,027

Total Stockholders' Equity                      4,560,887           4,166,162


(1) Earnings Before Interest, Income Taxes, Depreciation and Amortization
</TABLE>

<PAGE>


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

  Not Applicable.

ITEM 4.  CONTROLS AND PROCEDURES

     As of March 31, 2003, an evaluation was performed under the supervision and
with the participation of the Company's management, including the Principal
Executive Officer and the Principal Accounting Officer, of the effectiveness of
the design and operation of the Company's disclosure controls and procedures.
Based on that evaluation, the Company's management, including the Principal
Executive Officer and the Principal Accounting Officer, concluded that the
Company's disclosure controls and procedures were effective as of March 31,
2003. There have been no significant changes in the Company's internal controls
or in other factors that could significantly affect internal controls subsequent
to March 31, 2003.

<PAGE>

                                     PART II
                                OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

         None for period ending March 31, 2003.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         On November 30, 2002, our note with Fleet Bank was due in the amount of
$1,270,000. Effective December 1, 2002, the bank is charging an additional
annual interest of 4%. We are currently in the process of negotiating an
extension with the lender.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         None.

ITEM 5.  OTHER INFORMATION

         On March 14, 2003, Able Energy experienced an explosion and fire at
         its Newton, New Jersey facility that resulted in the destruction of an
         office building on the site, as well as damage to 18 company vehicles
         and neighboring properties. On April 3, 2003, Able Energy received a
         Notice of Violation from the New Jersey Department of Community
         Affairs. The dollar amount of the assessed penalty totaled $414,000.
         Able Energy has contested the Notice of Violation as well as the
         assessed penalties with the State of New Jersey and is awaiting a
         hearing date.

         On April 7, 2003, Able Energy, Inc., Able Propane, LLC, and Able Oil
         Company, LLC and Able Oil Company were named as defendants in a class
         action complaint filed with the Superior Court of New Jersey, Sussex
         County. The plaintiffs allege negligence, gross negligence, trespass,
         private nuisance and strict liability. In addition, the plaintiffs
         seek recovery of punitive damages. We intend to defend the suit
         vigorously.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)  Exhibits


         99.1     Certification of the Chief Executive Officer Pursuant to 18
                  U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.

         99.2     Certification of the Chief Financial Officer Pursuant to 18
                  U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.


         (b) Reports on Form 8-K

         The Company did not file any reports on Form 8-K during the three
months ended March 31, 2003.

<PAGE>


                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, on this 15th day of May 2003.


                                               ABLE ENERGY, INC.


                                               /s/ Timothy Harrington
                                               Timothy Harrington, Chief
                                               Executive Officer, Secretary, and
                                               Chairman

                                               /s/ Christopher P. Westad
                                               Christopher P. Westad, President,
                                               Chief Financial Officer, and
                                               Director



<PAGE>

                                  CERTIFICATION

     I, Timothy Harrington, Chief Executive Officer, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Able Energy, Inc.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3.   Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.   The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)   designed such disclosure controls and procedures to ensure that
     material information relating to the registrant, including its consolidated
     subsidiaries, is made known to us by others within those entities,
     particularly during the period in which this quarterly report is being
     prepared;

     b)   evaluated the effectiveness of the registrant's disclosure controls
     and procedures as of a date within 90 days prior to the filing date of this
     quarterly report (the "Evaluation Date"); and

     c)   presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of registrant's board of directors (or persons performing the equivalent
functions):

     a)   all significant deficiencies in the design or operation of internal
     controls which could adversely affect the registrant's ability to record,
     process, summarize and report financial data and have identified for the
     registrant's auditors any material weaknesses in internal controls; and

     b)   any fraud, whether or not material, that involves management or other
     employees who have a significant role in the registrant's internal
     controls; and

6.   The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

May 15, 2003

/s/ Timothy Harrington
Timothy Harrington
Chief Executive Officer


<PAGE>


                                  CERTIFICATION

     I, Christopher P. Westad, Chief Financial Officer, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Able Energy, Inc.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3.   Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.   The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)   designed such disclosure controls and procedures to ensure that
     material information relating to the registrant, including its consolidated
     subsidiaries, is made known to us by others within those entities,
     particularly during the period in which this quarterly report is being
     prepared;

     b)   evaluated the effectiveness of the registrant's disclosure controls
     and procedures as of a date within 90 days prior to the filing date of this
     quarterly report (the "Evaluation Date"); and

     c)   presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of registrant's board of directors (or persons performing the equivalent
functions):

     a)   all significant deficiencies in the design or operation of internal
     controls which could adversely affect the registrant's ability to record,
     process, summarize and report financial data and have identified for the
     registrant's auditors any material weaknesses in internal controls; and

     b)   any fraud, whether or not material, that involves management or other
     employees who have a significant role in the registrant's internal
     controls; and

6.   The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

May 15, 2003

/s/ Christopher P. Westad
Christopher P. Westad
Chief Financial Officer